The aim of this project is to predict whether or not a home loan will be given out by a company to a customer.The project is carried out in R and the power of caret package is utilized to perform the project. Problem Statement About Company Dream Housing Finance company deals in all home loans. They have presence across all urban, semi urban and rural areas. Customer first apply for home loan after that company validates the customer eligibility for loan.
Problem Company wants to automate the loan eligibility process (real time) based on customer detail provided while filling online application form. These details are Gender, Marital Status, Education, Number of Dependents, Income, Loan Amount, Credit History and others. To automate this process, they have given a problem to identify the customers segments, those are eligible for loan amount so that they can specifically target these customers.
Evaluation Metric is accuracy i.e. percentage of loan approval you correctly predict.